Regulatory Alerts2013-09-23
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BRPD Circular No. 10: Fixation of rate of Interest on Import Financing
The document fixes the maximum interest rate at 12% for onion import financing to ensure market supply amid price volatility. It permits banks to determine the minimum loan-to-value ratio for such imports based on bank-customer relationships. These directives are effective immediately and remain valid until December 31, 2013.
BRPD Circular No. 10 Banking Regulation and Policy Department Bangladesh Bank Head Office Dhaka. September 23, 2013 BRPD Circular No. 10 Date: ------------------- Ashwin 08, 1420 Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding fixation of rate of Interest on Import Financing. Your attention is drawn to BRPD Circular No. 02, dated January 04, 2012, on the subject cited above. In recent times, instability in onion prices has been observed due to inflation in the international market. In this context, the maximum limit of interest rate on onion import financing is fixed at 12% to ensure the supply of onions in the market as a daily necessity. Furthermore, the loan-to-value ratio for import financing may be determined at a minimum level based on bank-customer relationships to facilitate imports. These instructions shall be implemented immediately and shall remain in force until December 31, 2013. Please acknowledge receipt. Yours faithfully,
(Md. Anowarul Islam) Deputy General Manager Phone: 9530094
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